§ 68. Mr. Nottasked the Chancellor of the Exchequer what were the amounts of tax revenue lost to the Exchequer as a result of free depreciation in development districts in the fiscal years 1962–63, 1963–64, and 1964–65; and what was the estimated cost of cash grants in development areas for the fiscal years 1965–66 and 1966–67.
§ Mr. DiamondFree depreciation related to expenditure incurred between 4th April, 1963, and 16th January, 1966. In 1963–64 the cost was negligble; the estimated cost in 1964–65 is £20 million. Expenditure incurred after 16th January, 1966 qualifies for grants which are initially payable 18 months after the expenditure. There is accordingly no cost to the Exchequer in 1965–66 or 1966–67.